Public-Private Partnership Consulting Services for LA Metro
When the Los Angeles County Metropolitan Transportation Authority (Metro) established a Public-Private Partnership (P3) Program to help deliver high-priority transit and highway transportation projects, the initial evaluation comprised 81 prospective projects.
HDR|InfraConsult and HDR|Sharon Greene + Associates helped Metro appraise project readiness, risk factors that could affect project delivery and project delivery approach (whether delivery could be design-build, with or without private financial participation). Nine projects advanced for further strategic assessment so we could better understand the specific characteristics of each, including value for money, lifecycle cost factors and project attributes most promising for attracting private investment and/or risk sharing. We assessed and compare the risks of traditional design-bid-build project delivery against alternative project delivery methods and used the findings to identify projects or parts of projects that would progress to business case models. The resulting business plans allowed Metro to determine whether and how to proceed with P3 procurement for each project.
We are now assisting Metro with procurement for a design, build, finance, operate and maintain (DBFOM) P3 agreement for the Accelerated Regional Transportation Improvements Program (ARTI). ARTI consists of planned highway projects in Los Angeles County that were close to being cleared environmentally but programmed for construction in the future (2020 to 2030). The projects are packaged into a single program to be awarded to one concessionaire under a P3 agreement, with availability payments. Bundling several similar projects as one DBFOM package allows Metro to fund the projects with availability payments stretched out over a 35-year period, while delivering a 40-year program of highway improvements in about 15 years.
Additional projects are anticipated to progress through analysis under Metro's P3 Program in the future.